Landis Company uses the Allowance method of accounting for Bad Debts. On December 31, Landis Company...

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Landis Company uses the Allowance method of accounting for Bad Debts. On December 31, Landis Company had the following information: • Accounts Receivable balance is $437,000 • Allowance for Doubtful Accounts had a credit balance of $2,140 before adjustment. • The credit manager estimated that uncollectible accounts would be 2% of accounts receivable. a. What is the total estimated amount of uncollectible accounts (ie, The balance required in the AFDA account) for this year? (1 mark) b. Prepare the journal entry to record the required estimated amount for this year. (3 marks) Date Date Account Titles and Explanation C. On March 10, an accounts receivable from Kathy Brown for $6,100 was determined to be uncollectible and written off. (2 marks) Account Titles and Explanation DR CR Date DR CR D. On March 31, Landis recovered the amount from Brown - she paid her past due account in full (a marks) Account Titles and Explanation DR CR Landis Company uses the Allowance method of accounting for Bad Debts. On December 31, Landis Company had the following information: • Accounts Receivable balance is $437,000 • Allowance for Doubtful Accounts had a credit balance of $2,140 before adjustment. • The credit manager estimated that uncollectible accounts would be 2% of accounts receivable. a. What is the total estimated amount of uncollectible accounts (ie, The balance required in the AFDA account) for this year? (1 mark) b. Prepare the journal entry to record the required estimated amount for this year. (3 marks) Date Date Account Titles and Explanation C. On March 10, an accounts receivable from Kathy Brown for $6,100 was determined to be uncollectible and written off. (2 marks) Account Titles and Explanation DR CR Date DR CR D. On March 31, Landis recovered the amount from Brown - she paid her past due account in full (a marks) Account Titles and Explanation DR CR

Answer rating: 100% (QA)

a To calculate the total estimated amount of uncollectible accounts balance required in the Allowa... View the full answer